Six Month Mid Year Review

side hustleWith any measurement it’s always good to have benchmarks along the way.  I check on my net worth once a quarter, with a mid year and annual review.  For 2014 our goals is to achieve a $250,000 net worth increase.  $250,000 is more than our combined household income earned from our salaries, bonuses, profit sharing, dividends, side hustle and real estate income.  This accounts for market gains.  To achieve our goal we’re doing the following:

Live on one income and 100% invest the other
Maximize all retirement account contributions
Reinvest all dividends, rental income, and tax windfall (earned from our solar rebate)
Invest 100% any side hustle money I earn

Real Estate                                 +$17,915

This is the equity gained from paying down our mortgages in my primary house and rental units.  I don’t calculate any property value changes in this number.  Once a year in December I calculate the changes in property values based on neighborhood comps, tax assessment and Zillow.  Considering Hawaii properties are expected to rise 7% this year with the median house topping $700,000 and condo at $350,000 the fourth quarter should show some nice gains.

Stocks/Bonds                             +$144,986

This is across all 401K and taxable accounts, includes appreciation and contributions.  I invested my $15,000 solar tax return in a bond fund, I also received $35,000 from a business venture.  Used that money to invest in stocks.  In the first quarter I received my bonus and profit sharing which was then invested into the market.

In dividends I have received $8,777.13 so far this year.  The bulk of my investments are in retirement accounts which pay out their dividends in the fourth quarter.  Last year in the fourth quarter I received $10,140.53, looking forward to that again.

Business Venture                       -$35,000

Cashed out on a business investment and invested the proceeds into the stock market.

Cash                                               -$5,000

The first half was quite expensive, spent $13,000 on a family emergency.  Also went on a fancy Boston vacation and spent quite a bit.  Received $50,000 from a tax refund and business venture and invested that into the market.

Total Net Worth Gain                 +$127,901

I’m at 51% of my 2014 goal. The problem is I got there with a $50,000 windfall, my profit sharing and bonus in the first half.  In October my wife will hit her 2014 contribution limits in her 401K and I’ll hit mine in November, so we’ll be going from pre tax dollars to post tax dollars which will lower my contribution rate. We also have a couple of vacations lined up that will be an added expense.

I didn’t want to but it looks like I’m going have to rely on the market gains in both stocks and real estate to achieve my 2014 goals. We’ll look at controlling more of our expenses, I’ll look at increasing some of my side hustle income.   In January our $35,000 solar loan comes due so we’ll already be in the hole for 2015.  I’ll have a final update at the end of the year.

How are your first half goals?  Will you achieve what you set out in January?

Side hustle  photo image credit: college investor.com

Comments

  1. Thanks for sharing your recent net worth update. Always appreciate the transparency a lot of the bloggers have with some very personal information. Out of curiosity, what was that business venture that you cashed out of?
    DivHut recently posted…Dividend Stocks That Won’t Give You The JittersMy Profile

  2. Great job on your mid-year goals!
    I think we are doing okay so far this year. I haven’t tracked it as closely as you have, but I do know that the numbers are moving in the right direction.
    Holly@ClubThrifty recently posted…Tips for FreelancersMy Profile

  3. Those are jaw dropping numbers, Charles. We would love to get to that sort of point in our net worth gains, and hopefully we will in the coming years.

    The longer we get down the path to financial independence, the more we rely on the markets (and less on our contributions). It’s tough to not be as in control, but it’s a good problem to have, I guess.
    Done by Forty recently posted…Why Aren’t We Getting Better With Money?My Profile

  4. Charles,

    That’s a great start! Your six-month increase isn’t too far behind my entire net worth that’s taken all of my life to accumulate. This just proves why it’s so important to get that snowball rolling as soon and as fast as possible. It definitely starts to build momentum.

    Keep up the great work!

    Best wishes.
    Dividend Mantra recently posted…Three Stocks On My Watch List For August 2014My Profile

  5. Kay @ Green Money Stream says:

    It’s great to get a peak inside the numbers, thanks for sharing. Looks like you are doing an amazing job and are at 51% of your goal at the halfway point – that’s perfect.

    My (much more modest) goal was to collect $1,800 in dividends in 2014. Halfway through I’ve collected just over $1,000 so it’s going well!

  6. Those are some major numbers Charles. Well done sir. Our numbers are moving up, which is definitely the direction I want them to be going, but we had some medical expenses and some unexpected expenses that slowed the pace just a little. I’m looking forward to getting back on track in 3Q and 4Q.
    Ryan @ Impersonal Finance recently posted…do the math: cableMy Profile

  7. I’m not sure why, but the takeaway I got from this is that I’m intrigued what you and your wife do for a living, as well as what companies you work for in Hawaii. Mainly because I did some research on businesses in Hawaii when my wife was applying to grad school there. I still think it would be an amazing place to live. But anyway, back on topic, looks like you’ve made some good progress towards your goal. Even if you come up short it looks like you’ll have made some serious progress towards building up your net worth.
    DC @ Young Adult Money recently posted…How to get a Loan for a Small BusinessMy Profile

  8. David,
    I’m in corporate sales and my wife is in health care. The health care industry is one of the higher paying industries in Hawaii. We’ve been fortunate that the housing market in Hawaii avoided the bust which is a big contributor to my gains.
    Charles recently posted…Six Month Mid Year ReviewMy Profile

  9. Nice six figure increase! I wonder when the markets will finally correct.

    Is the housing market still strong in Oahu? Summers are slower in SF but pick up after Labor Day.

    Sam
    Sam recently posted…Financial Samurai Passive Income Update 2014-2015My Profile

  10. Charles, thanks for the update. Always enjoy others sharing their progress. All the best, Eli
    Eli @ The Currency Of Time recently posted…If I Can’t Figure It Out In A Decade…My Profile

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